The German Foreign Office on Wednesday said it will support the German-Speaking Jewry Heritage Museum in Israel, also called the Yekke museum, with a total of 1.2 million euros (1.4 million dollars) to ensure its survival.
The Foreign Office would "provide 1 million euros for the Yekke foundation as additional support for the continued existence of the Yekke museum and financing its move to the University of Haifa."
The foundation already received 200,000 euros in funds as part of the anniversary of 1,700 years of Jewish life in Germany.
The money is to finance the collection's move out of a building in an industrial area in the north of Israel as well as the storing of artefacts, archive material and artwork.
The announcement follows a meeting between German Foreign Minister Heiko Maas and Israeli President Reuven Rivlin on Tuesday.
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German-speaking Jews who emigrated to Israel, especially fleeing Nazi persecution in the 1930s, were called Yekkes by those already living there.
The Yekke museum, which was founded by German-born multibillionaire Stef Wertheimer, showcases their history and maintains their heritage.